Like many Gen Xers, my first car was a Volkswagen—a 1973 Beetle, to be exact. Back then, VW was known primarily for making quirky, fun cars like the Beetle, the Thing, the Bus, and the Karmann Ghia. You could get behind the wheel of a Rabbit or Jetta for a more conventional driving experience, but that was not VW's strong spot a few decades ago.

Times have changed. Volkswagen is now one of the three largest car companies in the world, and its lineup...